Recently some of us have discussed NEO's trying to encourage "non-poaching" which in this situation means one area trying to take jobs from another area; we've also recently discussed water here in Lucas County. In reading today's Cleveland Plain Dealer an article entitled, "'No poaching' plan dries up in suburbs" is well worth reading. Some key points:
Cleveland Mayor Frank Jackson tried to use water rate increases this year to lead Northeast Ohio into regional cooperation. His goal is stopping the city and suburbs from going into neighboring towns and offering enticements to companies to get them to relocate.
The four-year rate increases will generate an extra $10 million a year for improvements to the suburban waterlines, which many suburbs say are badly needed. Jackson offered to take over responsibility for the suburban lines, but only in suburbs signing "no poaching" agreements.
The suburbs had the discussion break down when it came to agreeing to not raid each other.
So Jackson decided to make agreements that protect Cleveland only. In the deal, generally, if an employer moves from Cleveland to a suburb, the suburb will share the resulting income taxes with Cleveland for five years.
The mayors and managers group won't vote on whether to enter into no-poaching agreements with Cleveland until next month, but at a meeting Thursday, few voiced opposition. After the group votes, each suburb will sign contracts with the city.
Another article that gives more background on the non-poaching issue can be found here for those interested in additional information.
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4 comments:
Nothing though about crowning Mayor Jackson and making him Emperor of N.E. Ohio, huh?
Odd; does Carty know about this?
Fight the good fight cleveland.
The second Cleveland Plain Dealer article from earlier this summer points out some things that I think Toledo and Lucas County haven't accepted yet, such as:
The wisdom of tax-incentive tussles is under increasing civic scrutiny, in a region desperate to reverse its economic fortunes.
Tax and loan incentives should be used to lure companies from outside the region and state, not for local business moves, Coyne argued.
"I don't think it makes sense," Coyne said. "We need to think globally, and we're giving [tax incentives] when money could be better used to invest in a smarter work force."
True Lisa, but companies will consider moving to Toledo globally if the economy is Toledo centric.
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